Revenue and Growth - For the six months ended June 30, 2022, the company reported total revenue of HKD 16,782 million, an increase of 38.39% compared to HKD 12,127 million in the same period of 2021[13] - The revenue from coal products increased by 39.95% to HKD 13,067 million from HKD 9,337 million year-on-year[17] - The company's supply chain integrated services generated revenue of HKD 1,310 million, a significant increase of 212.65% from HKD 419 million in the previous year[18] - Sales revenue from outside China (including Hong Kong, Macau, and Taiwan) was approximately HKD 4,676 million, accounting for 27.86% of total revenue, up from 14.98% in the previous year[14] - The company reported an increase in revenue from its integrated supply chain services with Mongolia, contributing to improved gross profit[49] - The geographical breakdown of revenue showed that China (including Hong Kong, Macau, and Taiwan) contributed HKD 12,105,899,000, an increase from HKD 10,310,708,000 in the previous year, representing a growth of about 17.4%[110] - The company expects to continue leveraging its supply chain services to enhance revenue growth in the future[108] Costs and Expenses - The cost of sales for the first half of 2022 was HKD 14,643 million, a 40.64% increase from HKD 10,412 million in the same period of 2021, primarily due to rising coal procurement prices[20] - Distribution costs increased by 106.25% to HKD 99 million in the first half of 2022, up from HKD 48 million in the same period of 2021, primarily due to increased domestic coal business[23] - Employee costs rose by 49.41% to HKD 454 million in the first half of 2022, compared to HKD 304 million in the same period of 2021, mainly due to increased wages for cross-border vehicle drivers[25] - Financing costs netted HKD 155 million in the first half of 2022, a 154.10% increase from HKD 61 million in the same period of 2021, primarily due to foreign exchange losses[27] - The company reported a significant increase in depreciation expenses, rising to HKD 119,493,000 from HKD 106,779,000 in the previous year[102] Profitability - Gross profit for the first half of 2022 was HKD 1,457 million, an increase of 8.65% compared to HKD 1,341 million in the same period of 2021[22] - Net profit for the first half of 2022 was HKD 721 million, down from HKD 787 million in the same period of 2021[28] - Operating profit increased to HKD 945,336 thousand from HKD 890,048 thousand, representing a growth of 6.2%[82] - Total comprehensive income for the period was HKD 430,828 thousand, down from HKD 848,521 thousand, indicating a significant decline[84] Financial Position - As of June 30, 2022, inventory was HKD 2,291 million, a decrease of 4.62% from HKD 2,402 million as of December 31, 2021, mainly due to market downturns in coking coal[30] - The debt-to-asset ratio as of June 30, 2022, was 56.57%, an increase from 51.60% at the end of December 2021[31] - Current assets totaled HKD 12,283,060 thousand, an increase from HKD 11,522,002 thousand, while current liabilities rose to HKD 8,980,477 thousand from HKD 7,755,594 thousand[86] - The company's total assets less current liabilities amounted to HKD 7,280,679 thousand, down from HKD 7,692,399 thousand[86] - The equity attributable to shareholders decreased to HKD 6,800,343 thousand from HKD 7,227,221 thousand, reflecting a decline in shareholder value[88] Cash Flow - Operating cash inflow for the first half of 2022 was HKD 659 million, compared to an outflow of HKD 462 million in the same period last year, indicating a turnaround in cash flow[37] - The group reported a net cash outflow from investment activities of HKD 436 million in the first half of 2022, contrasting with a cash inflow of HKD 8 million in the same period last year[37] - Financing activities resulted in a cash outflow of HKD 121 million in the first half of 2022, compared to a cash inflow of HKD 632 million in the same period last year, primarily due to loan repayments and share buybacks[37] Shareholder Information - The company declared an interim cash dividend of HKD 0.061 per share, expected to be distributed around January 18, 2023[78] - The company repurchased a total of 113,460,000 shares at a cost of approximately HKD 136,761,496 during the reporting period, all of which have been cancelled[54] - Major shareholders include Wang Yihan with 1,500,080,608 shares, representing 52.31% of the company, and China Minmetals Corporation with 1,503,195,952 shares, representing 52.41%[68] Risk Factors - The geopolitical tensions and COVID-19 pandemic have created uncertainties affecting the company's operational and financial conditions, particularly in coal supply and pricing[49] - Over 52.58% of the group’s revenue is denominated in RMB, while over 66.76% of procurement costs are in USD, exposing the company to currency risk[47] - The group’s financial position is significantly affected by commodity price fluctuations, which are influenced by international supply and demand dynamics[43] Corporate Governance - The audit committee held one meeting during the six months ending June 30, 2022, and reviewed the unaudited financial statements, confirming compliance with applicable accounting standards and regulations[75] - The remuneration committee also held one meeting during the same period to review and establish the remuneration policies for directors and senior management[76] - The company has complied with the corporate governance code, except for a deviation regarding the separation of the roles of chairman and CEO[77]
易大宗(01733) - 2022 - 中期财报